Johnson & Johnson: Focus on long -term returns and dividend prospects

Johnson & Johnson: Focus on long -term returns and dividend prospects

is a way for many people to increase their money. In their decisions in particular, the long -term investors not only consider the development of equity prices, but also the return through dividend payments. With regard to Johnson & Johnson (NYSE: JNJ) there are some interesting findings about the past five years.

Although Johnson & Johnson's share price has risen by 20 % in the past five years, this increase remains below the market average. Last year, the share recorded a moderate increase of 0.8 %. Nevertheless, a look at the fundamental data shows that the situation is more complex.

growth of profits and market opinion

The most fundamental numbers of a company are often crucial for the assessment by the investors. In the past five years, Johnson & Johnson has managed to increase the result per share (EPS) by 2.1 % annually. This contrasts with an annual increase in the share price by 4 %. We recognize that the market is obviously more optimistic about the future of the company than it did five years ago. Growth in the past has strengthened trust in the future of Johnson & Johnson.

The numbers of the EPS offer a useful insight into the financial health of the company. A new look at these figures suggests that the positive development of the company is not just a coincidence, but part of a consistent growth strategy. Since Johnson & Johnson continues to work on innovations and a solid business model, this company weakness could soon be compensated for by growth in sales.

The dividend yield: an important factor

A central element that investors should take into account when evaluating shares is the overall return for shareholders, also called Total Shaleholder Return (TSR). This key figure takes into account both the price development of the share and the income from dividends, provided that these have been reinvested. Over the past five years, Johnson & Johnson has achieved a TSR of 38 % - a remarkable value that is significantly higher than pure price development. The dividend payments are therefore an important reason for this difference.

Overall, we can find that investors from Johnson & Johnson achieved a return of 4 % last year, which, however, remains behind the market. However, if you look at the past five years, the average annual return is a whopping 7 %. It seems that the stock is just taking a breather while the company is working on its growth plans.

Further information can be found in the current analyzes that illuminate the future sales development of Johnson & Johnson. In order to maintain a full perspective, it is essential to look at other influencing factors that can affect the development of stock prices.

For those who are looking for promising investments, a look at the offers of companies that are considered undervalued and in which insider purchases have recently taken place. Such investments could turn out to be interesting alternatives to established brands like Johnson & Johnson.

More details about the developments and analyzes can be found in a comprehensive report on Simplywall.st .